A MAN was being quizzed by gardai last night after a taxi driver was beaten during a carjacking.

The driver was assaulted and dumped at the side of the road near the Ballyholey Crossroads, Raphoe, Co Donegal, minutes after picking up a fare in Letterkenny.

The victim, who was in his 40s, was treated for shock but was not seriously hurt.

The victim's car was later found burnt-out and close to the border.

A man in his 20s has since been arrested.

A second man is still being sought in connection with the incident.

A garda spokeswoman said "We've one man in custody but we're appealing to anyone who may have seen anything suspicious on the Lifford Road between 5am and 6am to contact us.

"His (the victim's) injuries were not serious and he managed to get help before reporting the incident to gardai in Letterkenny.

"One man in his 20s was subsequently arrested and taken to Letterkenny garda station. However, the second suspect remains at large and a full scale investigation is under way to try and find him," she added.